Domestic Versus International Merchant Accounts

The advice that many merchants get when they begin looking to open a merchant account is to look offshore. There are many advantages to opening up an offshore merchant account; but some people who are just beginning their business may feel that a domestic account may be more familiar, or easier to open, or provide more readily available customer service. In reality, holders of a domestic high risk merchant do not always enjoy these advantages; and offshore account holders may state that the experience has been much easier than they would have believed. 

One of the reasons why offshore, or international, merchant accounts are becoming so popular is simply because merchants are becoming aware of the virtually endless possibilities available to reach a worldwide market. The comfort and familiarity that comes with banking from a local institution are often outweighed by the following benefits:

·        Easy application: Most offshore merchant accounts can offer a response to an application very quickly, sometimes within minutes. Online web forms make it easy to complete an application from the merchant’s home or office.

·        Wide selection of banking institutions: The almost endless number of world banks means that high risk merchants can find a bank that is right for their account needs. Applicants can look for institutions that offer particular services or products, or perhaps those in particular countries.

·        Secure online credit card processing: Now merchants can accept online card payments for their offshore merchant account through payment gateways, enabling them to take payments in different currencies at the same time.

·        Fast updates: Real-time deposit updates means that merchants retain fast and accurate merchant account information. This is particularly helpful for merchants who are attempting to reduce their number of chargebacks.

·        Global reach: High risk merchants will have the potential to reach customers worldwide, because they are operating as an offshore merchant. Marketing for these merchants will have a global scope.

·        Tax savings: Merchant accounts located offshore will reduce the tax burden of domestic businesses due to the low business tax rates of the majority of these countries. Many merchants state that reduced taxes are the major reason they have opened one of these offshore accounts. 

Domestic banks tend to have stricter banking guidelines and account policies than their offshore counterparts; and offshore merchant accounts are often available to a wider range of applicants—even those with less than perfect credit history or business performance. Further, domestic banks will often require that high risk merchants provide a security deposit, while offshore institutions most often will not. 

A high risk merchant may want to open up an offshore account, but may also be worried about security. Fortunately, offshore institutions retain all information for verification and they provide a secure payment gateway that processes each transaction the same way a domestic bank would. These payment gateways generally have several security protocols that are processed very quickly. Security is also a priority when it comes to checking the balance of your account; and offshore institutions will often require that account holders pass a strenuous verification before they are allowed into any account records.

High Risk Processor specializes in High Risk Merchant Accounts, High Volume Merchant Accounts and even Offshore Merchant Accounts. High Risk Merchant Accounts usually typically include such industries as mail order, telephone orders, adult entertainment industry websites, direct marketing industries, online dating and escort businesses, outcall services, travel and timeshares industries, telecom, herbal supplements and diet sites, subscription services, membership services and other clubs, online ticket sales, MLM merchant accounts, multi-level marketing groups, bail bonds and pawn shops, water filtration systems, collection agencies, auto rental companies, rare coin and collectible shops, computers, custom design products, software sales and computer service, detective services, door to door sales, massage parlors, gun shops, hair restoration services, cosmetic surgery, high-end ticket sales, high volume merchant accounts, home based and telecommuting companies, fortune tellers, infomercial merchants, insurance and investment products, custom jewelry sales, multi level marketing, MLM organizations, phone sales and internet businesses, educational seminars and educational institutions, sports collectibles, used car and truck sales, water purifier sales, weight loss centers, vitamin and herbal supplements stores, international merchant companies, companies facing high rates of chargebacks, and more.